A forensic audit is a specialized examination of financial records and transactions to uncover fraud, embezzlement, or other financial misconduct. This type of audit often involves detailed analysis and investigation, using various techniques to identify discrepancies or suspicious activities. Forensic auditors may work with law enforcement or legal teams to provide evidence in court cases. The process typically includes reviewing documents, conducting interviews, and analyzing data to trace the flow of funds. Forensic audits are commonly used in cases involving corporate fraud, insurance claims, or bankruptcy, helping organizations ensure compliance and protect their assets.